Ways to Make Money from Real Estate
Wednesday Feb 14th, 2018Share
“Landlords grow rich in their sleep”, indeed they do!
I can’t stress enough the importance of owning real estate, one thing humans constantly need to do, besides breathing, is have a roof over their heads whether they are sleeping, working, studying, etc. So you will ALWAYS have audience for your property no matter what it is and what purpose it serves.
It is well known that the real estate industry has produced more rich people than any other industry in the world; still, there’s a misconception that to be in real estate means you have to enter with a heavy pocket and that’s not always the case.
Today I want to talk to you about that different ways YOU can make money in the real estate industry so you can find the right way for you.
- Appreciation on your raw land or property is a very common way of making money from real estate. It simply means that your property increases in value, and the only way to benefit from this option is by selling your property.
The three most common factors that affect the value of your property are location, development, and improvements.
- Income properties, or in other words, rent, is the most common way of investing and generating a steady cash flow. It can also come in many forms such as raw land, residential, and commercial units.
Location is extremely important when it comes to real estate in general and rental properties in specific as it directly affects your ability to rent and re-rent your property in no time.
- Home-renovations is another great way for making money in real estate, although it is waters that need to be approached with care and experience. Flipping a home requires knowledge in what people are looking for, and keeping up with a lot of trends. You also need to be able to calculate how much the home will be worth after you are done with the renovation. It has to be an amount that is worth your effort.
- A shot sale is that one step before a property is put up for auction. It sells for much less than is owed on the existing mortgage. It’s considered an excellent way to make money without going into lengthy renovations for the property. The only thing you need to be ready for with this option is you will have to pay for the homes outright in cash and in such little notice.
There are many twists and turns to making money in real estate, and its always best to discuss your options with a knowledgeable agent that understands your financials and advises you for YOUR best case scenario.
I am always here to answer all your questions, please feel free to call me at all times.